Canada Launches North America’s First Spot Solana ETF With 6-8% Staking Rewards

Canada has taken a significant step forward in the cryptocurrency market by introducing North America’s first spot Solana (SOL) exchange-traded fund (ETF) that includes staking rewards. This groundbreaking financial product, developed by Toronto-based digital asset manager 3iQ Corp, is designed to provide investors with direct exposure to the price of SOL while also earning passive income through on-chain staking. The ETF, named “The Solana Fund (QSOL),” is set to offer investors a regulated and reward-generating investment option, marking another first for Canada, which previously pioneered the world’s first spot Bitcoin and Ethereum ETFs.

What sets The Solana Fund apart from other crypto ETFs is its integration of Solana staking directly into the investment structure. By staking the fund’s SOL holdings on-chain, investors can potentially earn between 6% and 8% annually, in addition to any price appreciation from the asset itself. These rewards are expected to be reflected in the ETF’s net asset value (NAV), offering an added incentive to traditional investors seeking yield. Staking, which is typically a technical and hands-on process for individual crypto holders, becomes completely passive with this fund. The ETF handles all the backend work, making it easier for non-technical investors to benefit from Solana’s proof-of-stake consensus model.

To manage the fund’s assets securely and facilitate the staking process, 3iQ has partnered with Coinbase Custody and Canadian trust company Tetra Trust. Coinbase Custody will not only hold the SOL tokens but also provide the infrastructure needed for institutional-grade staking, ensuring both security and efficiency. Once approved, The Solana Fund will be listed on the Toronto Stock Exchange (TSX) under the ticker symbol QSOL. It will offer both Class A and Class F units, available to investors across Canada—except for Quebec, which is currently excluded under regulatory terms.

Canada continues to demonstrate a progressive stance toward cryptocurrency regulation and investment. It was the first country to approve a spot Bitcoin ETF in early 2021, followed quickly by spot Ethereum products. These moves opened the floodgates for global interest in regulated crypto ETFs. Now, by introducing a Solana spot ETF with staking rewards baked in, Canada is signaling to the world that it’s ready to support next-generation blockchain networks beyond just Bitcoin and Ethereum. Solana, known for its high-speed transactions and growing decentralized application (dApp) ecosystem, is currently the fifth-largest crypto by market cap and has rapidly become a favorite among developers and investors.

The launch of this ETF marks a new phase for SOL, as it provides a more accessible and regulated investment vehicle for those interested in the cryptocurrency. By combining price tracking with staking rewards, the ETF aims to boost returns and pave the way for broader blockchain adoption. The Ontario Securities Commission (OSC) has approved the launch, which is set to take place on April 16, 2025. This approval underscores the regulatory support for innovative crypto products in Canada and sets a precedent for other regions looking to integrate cryptocurrencies into traditional financial markets.

The introduction of staking rewards in the ETF is a notable feature, as it allows investors to earn passive income on their holdings. Staking involves holding and "locking" cryptocurrency in a wallet to support the operations of a blockchain network, in return for rewards. This mechanism not only incentivizes long-term holding but also contributes to the security and stability of the Solana network. By incorporating staking rewards into the ETF, investors can benefit from both the potential price appreciation of SOL and the passive income generated through staking, making it an attractive option for those seeking to diversify their investment portfolios.

The launch of the Solana ETF with staking rewards is a significant development in the crypto market, as it demonstrates the growing acceptance and integration of cryptocurrencies into traditional financial products. This move is expected to attract a wider range of investors, including those who may be hesitant to directly hold cryptocurrencies due to regulatory concerns or technical complexities. By providing a regulated and user-friendly investment vehicle, the ETF aims to lower the barriers to entry for crypto investing and foster greater adoption of blockchain technology.